Question
Exercise 6-8 (Algo) Compute the Margin of Safety [LO6-7] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the
Exercise 6-8 (Algo) Compute the Margin of Safety [LO6-7]
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next months budget appear below:
| Selling price per unit | $ 24 |
|---|---|
| Variable expense per unit | $ 16 |
| Fixed expense per month | $ 6,480 |
| Unit sales per month | 960 |
Required:
1. What is the companys margin of safety? (Do not round intermediate calculations.)
2. What is the companys margin of safety as a percentage of its sales?
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Accounting Information Systems And Internal Control
Authors: Eddy Vaassen, Roger Meuwissen, Caren Schelleman
2nd Edition
0470753951, 9780470753958
